Tax Code Of The Russian FederationPART ONE NO. 146-FZ OF JULY 31, 1998
(with the Amendments and Additions of March 30, July 9, 1999, January 2, 2000, December 29, 2000, May 30, August 6, 7, 8, November 27, 29, December 28, 29, 30, 31, 2001, May 29, July 24, 25, December 24, 27, 31, 2002, May 6, 22, 28, June 6, 23, 30, July 7, November 11, December 8, 23, 2003)
Passed by the State Duma on July 16, 1998
Approved by the Council of Federation on July 17, 1998
Chapter 11. Methods of Enforcement of Obligations Relating to Payment of Taxes and Fees
Article 72. Methods of Enforcement of Obligations Relating to Payment of Taxes/Charges
1. Obligations to pay taxes or charges may be enforced by the following methods: property pledge, guarantee, penalty, suspension of operations in bank accounts and attachment of a taxpayer's property.
2. The current chapter prescribes methods for the enforcement of obligations relating to the payment of taxes or charges, and the procedure and conditions of the application of such methods.
3. The rules stipulated by this Chapter, with the exception of Articles 76 and 77 of this Code, shall also apply to the method of providing security for the fulfilment of obligations to pay taxes and fees to the governmental extra-budgetary funds. The agencies of the governmental extra-budgetary funds, which exercise control over the payment of these taxes and fees, shall enjoy the rights and bear the duties of tax bodies.
Article 73. Property Pledge
1. If time frames are changed for the fulfilment of obligations to pay taxes and charges, the obligation to pay taxes and charges may be secured by a pledge.
2. A property pledge is formalized in an agreement effected between the tax authority and the pledger. The latter may be the taxpayer or payer of fees him/her/itself or a third person.
3. If a taxpayer or payer of fees fails to fulfil an obligation relating to the payment of a tax or fee due and penalty, the pledgee tax authority enforces this obligation from the value of the pledged property in the manner prescribed by the civil law of the Russian Federation.
4. The subject of pledge may be property that is pledgeable under civil law unless this article prescribes otherwise.
Property pledged under an agreement between the tax authority and pledger may not be the subject of pledge under another agreement.
5. The pledger may continue to have possession of the pledged property or transfer it at the pledger's expense to the tax authority (pledgee), and the latter is responsible for preservation of the pledged property.
6. Any transactions with pledged property, including transactions undertaken for the repayment of arrears, may only be undertaken by agreement with the pledgee.
7. Legal relationships arising out of a pledge as a method of enforcement of a tax obligation are subject to civil law rules unless otherwise prescribed by the legislation on taxes and fees.
Article 74. Guarantee
1. If times are changed for the fulfilment of obligations to pay taxes and charges, the obligation to pay taxes and charges may be secured by a guarantee.
2. If a taxpayer fails to pay when due the amount of tax or fee due and penalty, the guarantor is obligated before the tax authority to fully fulfil the taxpayer's tax obligation.
An agreement is effected in accordance with civil law between the tax authority and the guarantor to formalize the guarantee.
3. If the taxpayer fails to meet his/her guaranteed tax obligations, the guarantor and the taxpayer bear joint and several liability. The forced exaction of the tax and due penalties from the warrantor shall be effected by a tax body through legal proceedings.
4. Having fulfilled the obligations under the agreement, the guarantor is entitled to recover from the taxpayer the paid amounts, interest on these amounts and the losses incurred because of the guarantor's having fulfilled the taxpayer's obligations.
5. A legal entity or individual may act as a guarantor. One tax obligation may be guaranteed by several guarantors.
6. Legal relationships arising out of a guarantee as a method of enforcement of a tax obligation are subject to the provisions of civil law of the Russian Federation unless otherwise prescribed by the legislation on taxes and fees.
7. The rules of this Article shall also apply to guarantees/security with regard to payment of fees.
Article 75. Penalty Interest
1. A penalty as established by this Article is an amount of money which a payer of tax or fee, a tax agent shall pay in the case of an overdue payment of the amounts of taxes or fees, including taxes or fees to be paid in connection with the transfer of goods across the customs border of the Russian Federation in later period of payments in compared with that established by legislation on taxes and fee.
2. The amount of penalty interest is paid over and above the amounts of tax or charge due and irrespectively of the application of other methods to enforce the obligation to pay a tax or charge and liability for the violation of tax or fee legislation.
3. Penalty interest is calculated for each calendar day of delay in fulfillment of obligation to pay a tax or a fee, beginning on the day following the statutory deadline for the payment of a tax or charge.
No penalties shall be charged on the amount of arrears which the taxpayer could not repay because by decision of a tax body or a court of law the taxpayer's bank transactions had been suspended and his property arrested. The filing of an application for granting a delay or an instalment plan, a tax credit or an investment tax credit shall not stay the addition of penalties to the amount of the tax subject to payment.
4. The penalty interest for each day of delay is calculated in percentage points of the outstanding amount of tax or charge due.
The penalty interest rate is equal to 1/300 of the effective refinancing rate of the Central Bank of the Russian Federation.
5. Penalty interest may be paid simultaneously with the payment of a tax or charge or following full payment of such tax or charge.
6. Collection of penalty interest may be enforced from the taxpayer's bank account or from the taxpayer's other property in the manner prescribed by Articles 46-48 of this Code.
Enforced collection of penalty interest from a legal entity is effectuated without recourse to court, and from an individual, through court action.
Article 76. The Suspension of Transactions on the Accounts of a Taxpaying Organization, an Organization Acting as a Tax Agent, an Organization Paying the Due or a Taxpaying Individual Entrepreneur
1. Suspension of operations through bank accounts is used for the purpose of enforcement of a decision to recover a tax or charge unless otherwise stipulated by Item 2 of this Article. Suspension of operations through bank accounts means that the bank suspends all debit operations on an account unless otherwise prescribed by this article.
This restriction does not apply to the payments that under civil law shall precede the fulfilment of the obligation to pay taxes and fees.
2. A decision on the suspension of transactions of a taxpaying organisation on its accounts with a bank shall be taken by the chief (or his deputy) of the tax body who has sent the demand for tax payment in the case of the taxpaying organisation's default on the duty of tax payment within the fixed period of time. In this case a decision on the suspension of the taxpaying organisation's transactions on its bank accounts may be taken only simultaneously with the adoption of a decision on the exaction of the tax.
A decision on the suspension of transactions of a taxpaying organisation and taxpaying individual entrepreneur on their bank accounts may also be taken by the chief (or his deputy) of a tax body if these taxpayers failed to submit tax declarations to the tax body within two weeks upon the expiry of the fixed term of filing such declarations, and also in the case of the refusal of a taxpaying organisation or a taxpaying individual entrepreneur to file their tax declarations. In this case the suspension of transactions on accounts may be repealed by decision of a tax body within one transaction day following the day of submission of tax declarations by these taxpayers.
3. The tax authority notifies both the bank and the taxpaying organisation simultaneously that it has been decided to suspend operations through the bank accounts of the taxpaying organisation; the fact and date of receipt of notification shall be acknowledged by the receiving party in writing.
4. A bank shall in any case fulfil the tax authority's decision to suspend operations through the bank accounts of the taxpaying organisation.
5. The suspension of operations through the bank accounts of the taxpaying organisation shall be effective as from the time of receipt by the bank of the tax authority's decision to suspend such operations pending the repeal of such demand.
6. The suspension of operations through the bank accounts of the taxpaying organisation shall be repealed by a tax authority decision not later than one business day following the submission to the tax authority of documents in confirmation of the fulfilment by the above mentioned person of the decision to collect the tax.
7. The bank is not liable for losses caused to a taxpaying organisation by the suspension of such persons' bank operations by decision of the tax authority.
8. The rules of this Article shall also apply to suspension of bank operations for organisations acting as a tax agent and organisations paying fees.
9. In the presence of a decision on the suspension of transactions on the organisation's accounts, the bank shall have no right to open new accounts for this organisation.
Article 77. Attachment of Property
1. Attachment of property as a method of enforcement of a decision to collect a tax is an action by a tax or customs authority to restrict the taxpaying organisation's or another obligated person's ownership rights relating to his property; such action requires the consent of a prosecutor.
Property is attached if a taxpaying organisation fails to fulfil in due time a demand to pay a tax or if the tax or customs authorities have sufficient reason to believe that the indicated person is likely to take measures aimed at hiding him/herself or concealing his/her property.
2. Attachment of property may be full or partial.
A full attachment of property is a restriction of rights of a taxpaying organisation with respect to its attached property, and the possession and use of such property is performed only under the supervision or with permission of the tax or customs authority that executes the attachment.
A partial attachment is a restriction of rights of a taxpaying organisation with respect to its attached property, and the possession, use and disposal of such property is performed only under the supervision or with permission of the tax or customs authority that executes the attachment.
3. An attachment may be used only to ensure the collection of a tax at the expense of a taxpaying organisation in accordance with Article 47 of this Code.
4. A taxpaying organisation may have all its property attached.
5. Only that property may be attached that is necessary and sufficient for the fulfilment of the demand to pay tax.
6. A decision to attach a taxpaying organisation's property shall be made by the chief officer (deputy chief officer) of the tax or customs authority. Such decision takes the form of a resolution.
7. Attachment of a taxpaying organisation's property requires the presence of witnesses. The authority that conducts the seizure shall not be able to deny the right to the taxpaying organisation to attend the attachment procedure.
Their rights and obligations shall be explained to the persons who participate in the attachment procedure as witnesses,experts, and also to the taxpaying organisation (its representative).
8. An attachment may not be made at night-time except for cases that brook no delay.
9. Prior to an attachment the officers to make the attachment shall show the taxpaying organisation (its representative) the decision to make the attachment, a document stating the prosecutor's approval and documents confirming their authority.
10. An attachment is put on record. The attachment record or a list attached to the record shall contain a list and description of the property to be attached; the record shall have an accurate description of the attached assets, their quantity and individual characteristics, and if feasible, their value.
All assets to be attached shall be demonstrated to the witnesses and to the taxpaying organisation (its representative).
11. The chief officer (deputy chief officer) of the tax or customs authority that orders the attachment of property determines where the attached assets shall be kept.
12. Attached property may not be alienated (with the exception of alienation supervised or permitted by the customs or tax authority that makes the attachment), embezzled or concealed. Failure to observe the established procedures for possession, use and disposal of the attached property may result in liability of guilty persons in accordance with Article 125 of this Code and/or other federal laws.
13. A decision to attach property shall be repealed by a duly authorized officer of the tax or customs authority as the obligation to pay tax terminates. A decision to attach property shall be effective from the time when the attachment is made until the repeal of the attachment decision by a duly authorized officer of the tax or customs authority that takes the decision to make the attachment or until a higher-level tax or customs authority or a court of law overrules such decision.
14. The rules of this Article shall also apply to attachment procedures in relation to organisations acting as a tax agent and organisation paying fees.
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